US Elections, General

Week Ahead: Amazon and Google wrap up FAANG results

George Walker, Friday, 29 January 2021

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The first trading day of the new month kicks off a big week ahead with Manufacturing PMI data from China, Germany, the Eurozone, the UK and the United States. So far, markets have reacted positively to the steady improvement in economic data and, as Manufacturing PMI readings contribute towards an economy’s GDP, the figures from these countries could set the tone for the trading day.

We also expect Retail Sales data from Germany and Unemployment figures from the Eurozone during the morning’s session.

Those with an interest in trading the AUD will need to be aware of the Reserve Bank of Australia’s Interest Rate Decision overnight into Tuesday. Like most central banks, the RBA is not expected to amend current monetary policy so traders will be keen to hear the economic in the accompanying Statement to better understand how monetary policy could change in the near future. 

Although only a preliminary reading, the GDP figures out of the Eurozone mid-Tuesday morning could see volatility in the EUR and related indices. Investors will be looking to see if there’s a sign of recovery for the Eurozone which collectively accounts for over 15% of the global economy. Wrapping up the day, Unemployment out of New Zealand may give kiwi traders some moves.

More PMI data across economies

Services PMI data dominates Wednesday’s updates as we see China, Germany and the Eurozone, the UK, and the United States release their data. As with the Manufacturing data earlier in the week, Services contributes largely towards an economy’s GDP. Generally speaking, a larger-than-expected release could be viewed as bullish, whereas as weaker-than-expected numbers could be viewed as bearish. US ADP Employment could also be worth paying attention to in the afternoon as it is often viewed as a precursor to the headline NFP at the end of the week. 

Retail Sales data from the Eurozone gets us underway on Thursday before all eyes fall on the Bank of England. It’s Interest Rate Decision time for Andrew Bailey and the BoE as they set the path for future monetary policy. Unlike the majority of central banks, the Bank of England is juggling more than one economic issue. Recovering from the pandemic, as well as ensuring a smooth exit from the European Union are both major challenges faced by the BoE. It is unlikely that there will be any attention-grabbing change in interest rates, however, all eyes and ears will be tuned in to the Governor’s speech just after midday. 

Build-up to January’s jobs data

As usual, the final trading day of the week sees the US Nonfarm Payroll (NFP) figures steal the spotlight on the macro front. Viewed as key employment data in the world’s largest economy, this data release can influence market sentiment across the board into the weekend.

US and UK earnings are in full swing

There’s another huge week ahead on the US earnings front as major companies such as Amazon, Alphabet, Alibaba, Pfizer, and Exxon Mobil are among those due to announce results. America won’t be getting all the attention as UK results are now in full flow. BP, GlaxoSmithKline, Vodafone, Royal Dutch Shell, Unilever, Barratt Developments, and BT are all expected to publish their own quarterly results.

Upon the release of earnings, share prices can move aggressively and can leave gaps at market open. Traders will need to be aware of the times and dates in order to position themselves for the results.

All times indicated are GMT.
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ECONOMIC CALENDAR (all times are GMT)

Monday, 1st February
00:00 AUD TD Securities Inflation
00:30 JPY Jibun Bank Manufacturing PMI
01:45 CNY Caixin Manufacturing PMI
07:00 GER Retail Sales
07:30 CHF Real Retail Sales
08:55 GER Markit Manufacturing PMI
09:00 EUR Markit Manufacturing PMI
09:30 GBP Markit Manufacturing PMI
10:00 EUR Unemployment Rate
14:45 USD Markit Manufacturing PMI
15:00 USD ISM Manufacturing PMI
15:00 USD ISM Manufacturing Prices Paid
15:00 USD ISM Manufacturing New Orders Index
15:00 USD ISM Manufacturing Employment Index

UK Company Announcements:
Hargreaves Lansdown

US Company Announcements: 
Thermo Fisher Scientific
Vertex Pharmaceuticals
NXP Semiconductors N.V.

Tuesday, 2nd February
03:30 AUD RBA Interest Rate Decision
03:30 AUD Rate Statement
10:00 EUR Gross Domestic Product Preliminary
13:55 USD Rebook Index
18:00 USD Fed’s Williams Speech
21:30 USD API Weekly Crude Oil Stock
21:30 AUD AiG Performance of Construction Index
21:45 NZD Employment Change
21:45 NZD Unemployment Rate
22:00 AUD Commonwealth Bank Services PMI
22:00 AUD Commonwealth Bank Composite PMI

UK Company Announcements:
BP
Gem Diamonds
SSE
Virgin Money UK

US Company Announcements:
Amazon.com
Alphabet
Alibaba Group Holding Limited
Pfizer
Exxon Mobil
Amgen
Chubb Limited
Ferrari N.V.
Chipotle Mexican Grill

Wednesday, 3rd February
00:30 JPY Jibun Bank Services PMI
00:30 AUD Building Permits
01:30 AUD RBA’s Governor Lowe Speech
01:45 CNY Caixin Services PMI
08:00 EUR Non-Monetary Policy ECB Meeting
08:55 GER Markit Services PMI
08:55 GER Markit PMI Composite
09:00 EUR Markit Services PMI
09:00 EUR Markit PMI Composite
09:30 GBP Markit Services PMI
10:00 EUR Consumer Price Index Preliminary
10:00 EUR Consumer Price Index – Core Preliminary
10:00 EUR Producer Price Index
13:15 USD ADP Employment Change
14:45 USD Markit Services PMI
14:45 USD Markit PMI Composite
15:00 USD ISM Services PMI
15:00 USD ISM Services Prices Paid
15:00 USD ISM Services New Orders Index
15:00 USD ISM Services Employment Index
15:30 USD EIA Crude Oil Stocks Change
21:45 NZD Building Permits

UK Company Announcements:
GlaxoSmithKline
Vodafone

US Company Announcements:
Abbvie
QUALCOMM
Spotify Technology
Biogen

Thursday, 4th February
00:30 AUD Imports
00:30 AUD Exports
00:30 AUD Trade Balance
10:00 EUR Retail Sales
12:00 GBP BoE Interest Rate Decision
12:00 GBP BoE Asset Purchase Facility
12:00 GBP BoE Vote Unchanged
12:00 GBP BoE Vote Hike
12:00 GBP BoE Vote Cut
12:00 GBP Bank of England Monetary Policy Report
12:00 GBP Bank of England Minutes
12:00 GBP Monetary Policy Summary
12:30 GBP BoE’s Governor Bailey Speech
13:30 USD Initial Jobless Claims
13:30 USD Continuing Jobless Claims
15:00 USD Factory Orders
21:30 AUD AiG Performance of Services Index
23:30 JPY Overall Household Spending

UK Company Announcements:
Royal Dutch Shell
Unilever
Barratt Developments
Renishaw
BT
Compass Group

US Company Announcements:
Merck & Company
Bristol-Myers Squibb
Gilead Sciences
Snap

Friday, 5th February
00:30 AUD RBA Monetary Policy Statement
00:30 AUD Retail Sales
07:00 GER Factory Orders
13:30 USD Nonfarm Payrolls
13:30 USD Unemployment Rate
13:30 USD Average Hourly Earnings
13:30 USD Average Weekly Hours
13:30 USD Labour Force Participation Rate
13:30 USD Goods and Services Trade Balance
13:30 GBP BoE Governor Bailey Speech
13:30 CAD Unemployment Rate
13:30 CAD Participation Rate
13:30 CAD Net Change in Employment
13:30 CAD Average Hourly Wages
13:30 CAD Imports
13:30 CAD Exports
13:30 CAD International Trade Balance
13:30 CAD Ivey Purchasing Managers Index
18:00 USD Baker Hughes US Oil Rig Count

UK Company Announcements:
Beazley

US Company Announcements:
Linde PLC
Sanofi
Estee Lauder Companies
Illionois Toll Works
Aon PLC

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